UK average property prices are still higher in comparison to previous year


UK average property prices are still higher in comparison to previous year

12 Oct 2018

UK average property prices

There has been a drop in property rates in the month of September but the prices are still higher. Halifax reports the growth rate was 2.5 percent in September, dropped by 1.4 percent from August average rate standing at £225,995. The data suggests the markets of East and West Midlands, Humber and Yorkshire are buoyant, where sale agreements can be made in weeks but the London markets have no clear direction in house price growth.  

These markets are driven by low supply, low unemployment, and low-interest rates. Initially, the company forecasted the price will be in the range of 0 to 3 percent in the year but it is observed that the outcome is towards the top of the range and most investments are needed to be driven.

Growth in letting

The letting market remained active in the country with viewing grew 13.3 percent per annum and the lease signing was up by 3.5 percent.   Supply of rental property fell 6.9 percent as per quarterly analysis from Reapit and Dataloft. The report was based on combined data of letting agencies from various rental markets, viewing and demand signals. The withdrawal of landlord mortgage tax relief forced many landlords to sell the property and this led to supply issues. The survey by the company finds at least 10 percent of the homeowners are actively considering selling and this will have a negative impact on rental inventories.

Lower range markets doing well

RICS claims the remarks by Carney influenced buyers who were actively seeking to move to new homes in the last few months as investors fear political and economic instability. RICS survey report based on consumer sentiments and viewers shows the new buyers are holding back due to uncertainties and this can reduce transactions in some specific sections and regions. Slow down in the purchase, affordability issues and lack of homes was responsible for low real estate transactions, in the month of September. The disparity in property rates across the country is also affecting buyers.

The section of the market where homes were below £250,000 are doing well, whereas, the ones in the mid-market range are flat.

Zoopla study on the fast-moving property found, in Edinburgh properties, sell fastest and in Manchester, the property takes, on an average, 36 days to sell, whereas, in London it takes 54 days, on an average, to get an offer.

Reducing rental inventory

There website Home.co.uk claims the number of rental property is lowering in the country, especially, in Greater London as per the new data. The available homes on rent stay for not more than 20 weeks.

Growth in construction

Construction grew by 1.5 percent in the last quarter to August 2018, which this was led by growth of 15 percent in the North West which is more than 10 times of the country’s average. The investments in North West housing increased by £386 million in the quarter as compared to the last year as per ONS statistics. The construction of new housing was up by 5.6 percent in the last quarter. Most constructions target first time buyers who have the advantage of stamp duty and Help to buy scheme.  

To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).

 

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